Next session dates: January 9 & 10, 2008
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This week...
Legislative Session Cancelled
This afternoon, House Speaker Michael J. Madigan, in consultation with House Republican Leader Tom Cross, announced that the scheduled legislation session for next week has been cancelled. According to the letter, there has not been "a full endorsement by the other legislative leaders or Governor Blagojevich of the gaming regulation and ethics reforms detailed in HB 4194" and subsequently "the legislative process will be better served by holding a session on later dates."
The letter comes on the day after U.S. Attorney Patrick Fitzgerald indicted a former top fundraiser for Governor Blagojevich who also served as the Governor’s point person on riverboat gaming negotiations on tax fraud related to gambling debts. Madigan’s letter notes that it is critical that Illinois have a strong regulatory structure for gaming since proceeds of any new gaming legislation are critical for the capital infrastructure and education needs of the state.
At this point, the Governor and other legislative leaders have not responded to the letter. It is possible that another special session could be called by Governor Blagojevich to address the ongoing issues.
Judge Allows Baise, Gidwitz to Join Health Care Lawsuit
Today, Cook County Judge Jimmy Epstein heard legal arguments and allowed Ron Gidwitz and Greg Baise, president and treasurer of the Illinois Jobs Coalition respectively, to join a lawsuit challenging the ability of Governor Blagojevich to unilaterally expand health care programs in Illinois without legislative approval.
Baise, president of the Illinois Manufacturers’ Association expressed gratitude and stated "I look forward to a full and equitable hearing before the judge" on this matter that is of extreme importance to the taxpayers of Illinois. Additional court proceedings will continue next week.
Cook County Board Stops Energy Tax Hikes
This week, members of the Cook County Finance Committee overwhelmingly defeated proposals aimed at imposing new taxes on natural gas and electricity that were proposed by Commissioner William Beavers to help the County overcome a massive $239 million budget deficit. At the meeting, Commissioner Beavers requested a roll call vote on the two proposals that would have implemented tax hikes of nearly 5 percent on the purchase of both electricity and natural gas.
Only two Commissioners (William Beavers and Jerry Butler) voted in FAVOR of the energy tax hikes while 14 Commissioners OPPOSED these onerous and costly taxes. Commissioner Earlean Collins was not in attendance at the Finance Committee. The IMA lauds the voted of the fourteen Commissioners who stood with the business community today.
Following the votes on electricity and natural gas, Commissioner Roberto Maldonado sought a vote on his package of tax hikes (SUVs, jet fuel, hotel tax, liquor, parking spaces) but he was unable to get a seconding motion and no votes were taken. Today's hearing comes a couple of weeks after the County began its budget year on December 1 and after Commissioners refused to go along with Cook County President Todd Stroger's attempt to raise both the county sales tax and property tax. An earlier proposal from Commissioner Beavers calling for an annual $48 tax per communications line (phone, cell phone, data line, fax) was not called for a vote in the face of strong opposition.
After the vote, Finance Committee Chairman John Daley noted a lack of support for any form of tax increase and requested that Department heads be prepared to come to next week's Finance Committee with proposed 10 percent reductions in their respective budgets.
The IMA appreciates all of the companies who responded to our "call to action" and made contact with their elected Commissioners and helped defeat these costly tax hikes that would have hurt the manufacturing sector.
Statewide Smoking Ban Set to Take Effect
On January 1, 2008, Illinois Public Act 95-0017 "The Smoke Free Illinois Act" becomes effective which prohibits smoking in public places and places of employment. While the statewide smoking ban will take effect at the beginning of the year, the actual administrative rules will not be considered by the Joint Committee on Administrative Rules (JCAR) until January 9 at the earliest.
The new law prohibits smoking in any public place or workplace including within 15 feet of any entrance, window, or ventilation intake that services the public place. Further, ashtrays must be removed from the premises and "No Smoking" signs must be clearly posted within all public places.
While the law does not specifically designate the required verbiage on the signs, the administrative rules that will considered specifically state that the signs must be: (1) no smaller than 5 inches by 7 inches; (2) contains the telephone number designated by the Department of Public Health for registering complaints (866-973-4646); (3) contains the Department’s website for obtaining a complaint form; and (4) must be of sufficient size to be clearly legible to an individual from a distance of five feet.
The Department of Public Health has a web page with frequently asked questions about the new law and you can download free signs that meet the legal requirement from the IMA website.
Act Now to Extend Federal Research & Development Tax Credit
Once again, the federal Research & Development tax credit is set to expire at the end of the year while members of the U.S. Senate and Congress continue to disagree on various components of a tax package. Members of Congress have passed a 1-year extension of the R & D tax credit while the Senate's version of the tax bill did not include the extension. We need both the House and Senate to agree on an extension and send it to the President for his signature.
Since inception of the federal R & D tax credit in 1981, investments in technology and innovation have spurred economic growth and contributed real benefits to the American public and manufacturing companies in particular. Failure to pass an extension of the R & D credit will disrupt current investments, create uncertainty and could undercut the nation's ability to compete in the global economy.
Please join our effort in contacting U.S. Senators Dick Durbin and Barack Obama in addition to all members of the Illinois Congressional Delegation. Ask our members of Congress to act now to extend the R & D tax credit before December 31 deadline. Click here to find the contact information for your officials.
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